Lending plan 'a great endorsement' for small firms

The government's announcement of improved lending to smaller firms is a "great endorsement for the sector", according to one expert.

Paul Aitken, the Chief Executive Officer and Founder of borro, the personal asset lender, said that the move acknowledges the role that alternative lending plays in the wider economy.

He believes that too many small firms are suffering from a "restricted lending environment" and need more help if they are to grow in the coming months.

"At borro, we have seen a sharp increase in SME owners and entrepreneurs coming to us. This group now makes up over half of our current customer base and in the main they come to access liquidity so they can realise a business opportunity or to ease a cash flow situation," Mr Aitken said.

The government's Business Finance Partnership scheme, unveiled yesterday (December 12th), will see £110 million invested in smaller businesses in the coming years.

Posted by Thomas Fletcher

Date published 13 Dec 2012 | Last updated 13 Dec 2012